Stocks of rare earth miners surged during morning trade on Wednesday after Chinese state-linked media said that Beijing may weaponize the exports of the vital materials amid an escalating trade war with the US.

Hong Kong-listed shares of China Rare Earth Holdings Ltd skyrocketed around 40 percent after the opening bell before slightly falling back later in the day. At the same time JL Mag Rare-Earth Co, the plant Chinese President Xi Jinping visited last week, jumped more than 10 percent. The miner's stock has been rising for several consecutive trading sessions and hit a record high on Wednesday.

Not only Chinese miners enjoyed gains on Wednesday, as shares of Australian rare earths producer Lynas reached a historic peak after they gained more than 15 percent in one day. Australia is one of the top global rare-earths producing countries, with annual output of 20,000 tons, but it is far behind Chinese yearly production of 120,000 tons.

The rare earth card: China's reserves account for roughly 30% of the world's total, and the country produces more than 80% of the world's supply. 80% of the US' rare-earths imports between 2014 and 2017 are from China. pic.twitter.com/7rzoQ7QVd1

The rally comes shortly after Chinese government-funded media, such as the Global Times and Peoples Daily, reported that China may use the elements to hit back against US pressure. On Tuesday, Global Times editor in chief said that Beijing is “seriously considering” an embargo on rare earths. Beijing has not officially commented on the issue so far.

China wont tolerate foreign high-tech products made from #rareearths produced in China being used to contain and suppress the countrys development, an official with the National Development and Reform Commission said Tue pic.twitter.com/F567C9Ga0e

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